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CIT bondholder plan backed by unsecuritized assets

NEW YORK, July 19 (Reuters) - The $3 billion rescue financing plan arranged by bondholders of the CIT Group Inc CIT.N will be backed by remaining unsecuritized assets which likely exceeds $10 billion, a source familiar with the matter said on Sunday.

CIT, the 101-year-old commercial finance company, is holding discussions late Sunday with the bondholder group, which includes Pacific Investment Management Company (Pimco) and some other top CIT holders, to consider the plan, according to the source.

“The $3 billion is new money but securitized by all the remaining unsecuritized assets which probably exceed $10 billion,” the source said. (Reporting by Jennifer Ablan; Editing Bernard Orr)

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